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NBP Rules out misleading reports of Rs. 1.5 Billion fraud at the bank

KARACHI ( TARIQ REPORT )

Media reports have implied that a fraud of Rupees 1.5 billion was committed at National  Bank of Pakistan and that the bank incurred a loss of this amount. National Bank of Pakistan firmly denies these allegations.

In some media reports it is also implied that National Bank of Pakistan has caused a loss to our valued client, Abandoned Properties Organization (APO). We again categorically deny these allegations. National Bank of Pakistan has acted upon the client’s instructions with respect to the activities in the APO account.

In the course of several banking transactions in 2014-2016, valid instructions were received from APO’s Authorized Signatories. The client’s instructions requested National Bank of Pakistan to remit the funds to Habib Bank Limited (HBL) for onward credit to Abandoned Properties Organization. After carrying out the appropriate level of due diligence, National Bank of Pakistan remitted these funds in accordance with the client’s instructions, using the RTGS system, a secure electronic payment prevalent in the country.

However, very recently we received a query from Abandoned Properties Organization concerning their account activity, and within a few days, National Bank of Pakistan completed an investigation which uncovered the fact that Habib Bank did not credit the client with the funds in accordance with the instructions that National Bank of Pakistan provided in the RTGS instructions.

National Bank of Pakistan acted swiftly and registered a case with the FIA. Several people have been apprehended by the FIA, including at least 4 past and present senior officials from APO (having the authority to operate their account with National Bank of Pakistan);  one or more Habib Bank officials; and a junior executive of National Bank of Pakistan. This lady has been suspended by the bank and does not represent the bank in any capacity. She remains in the FIA’s custody.

National Bank of Pakistan is fully cooperating with the regulatory and investigative agencies in this case and is committed to securing the interests of its valued client, Abandoned Properties Organization.

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